Apple off 8%: FYQ1 Rev $57.6B, EPS $14.50 Beat; Q2 Rev View Misses

By Tiernan Ray

Apple (AAPL) this afternoon reportedfiscal Q1 revenue and EPS that topped analysts’ expectations, but a view for this quarter’s revenue that was lower than expected.

Revenue in the three months ended in December rose to $57.6 billion, yielding EPS of $14.50, excluding some costs.

Analysts had been modeling $57.47 billion and $14.09 per share in EPS.

The company sold 51 million iPhones during the quarter, which was below Street expectations ranging from 54 million to 56 million. It sold 26 million iPads, it said, higher than some estimates for around 24 million. The company sold 4.8 million Mac computers, up from 4.1 million a year earlier, it said.

Gross margin in the quarter was 37.9%, down from the prior-year period’s 38.6%, but aboe the company’s own forecast for 36.5% to 37.5%.

Apple said its revenue from “Greater China” rose 29%, to $8.8 billion, making up 54% of total revenue.

CEO Tim Cook said the company was “with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, Software and Services.”

CFO Peter Oppenheimer remarked that the company “generated $22.7 billion in cash flow from operations and returned an additional $7.7 billion in cash to shareholders through dividends and share repurchases during the December quarter, bringing cumulative payments under our capital return program to over $43 billion.”

The company ended the quarter with $158.84 billion in cash, equivalents, and long-term investments, and $16.96 billion in long-term debt, or $142 billion in net cash.

For the current quarter, the company sees revenue in a range of $42 billion to $44 billion, which is below consensus for $46.1 billion

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There are 9 comments

JANUARY 27, 2014 4:38 P.M.

Shiroto wrote:

Article is mistaken, as per headline EPS was $14.50

JANUARY 27, 2014 4:39 P.M.

ValleyOracle wrote:

Now the blaming Tim Cook parade starts here :-( Sigh...

JANUARY 27, 2014 4:40 P.M.

TR Applehumper wrote:

"The company sold 51 million iPhones during the quarter, perhaps a little light relative to expectations for as many as 56 million."

"perhaps a little light relative to expectations"

???WTF???

A little light???

That's 10% light, for crying out loud. Tell it like it is, why don't you?

JANUARY 27, 2014 4:49 P.M.

KPOM wrote:

Samsung's smartphone sales "missed" as well, so you can't blame Apple's iPhone "miss" on competition from Samsung. More likely it's a maturing market, and the iPhone 5S (which is harder to produce but higher margin) sold significantly better than the 5C. That also could explain why Apple's profits handily beat consensus.

JANUARY 27, 2014 4:59 P.M.

Anonymous wrote:

If you add iPods, OSX devices to iPads and iPhones etc, you're looking at around 90 million devices sold in three months. And the stock is down? 90 million devices.

They beat Samsung too. WTF. Who sold off?

Apple should hold onto their cash. You guys are silly.

It's a buy tomorrow. IMHO

JANUARY 27, 2014 5:02 P.M.

BP wrote:

Wait till Mr. Cook start talking about how excited he is and all the wonderful products they are going to make somedaaaaaay. That should drop the price another 10 bucks or so. Go Tim Cook. Dither dither dither.

JANUARY 27, 2014 5:07 P.M.

Anonymous wrote:

Apple is pulling in almost a billion dollars a day in revenue and selling almost a million iPhones a day for the Q and people punish the stock? Gimme a break.

JANUARY 27, 2014 5:10 P.M.

TR Applehumper wrote:

Looks like Carl iCahn needs to change his name to iCahnt.

JANUARY 27, 2014 10:22 P.M.

Pat wrote:

As a former Apple investor what frustrates me is the lack of detail in their reporting.

You can infer based on margins and ASP which models are selling, and it looks like the 5C isn't, and the 5S was probably on target, but with the ASP going down, and margins also slightly down, I am very curios how many of these phones are older models which carriers are still using as freebies for 2 year contracts.

I think the only real good (and surprising news) was Mac sales, but then again, I would consider this a temporary bump as the die hard fans bought the new $3K "trash can" Mac, which IMO is way overpriced and way overrated spec wise.

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.